EXHIBIT 99.1
July 22, 2005
NEWS RELEASE to Lexington Herald-Leader
First Security Bancorp, Inc., the parent of First Security Bank of Lexington, announced its financial results for the quarter ended June 30, 2005.
Net income for the quarter ended June 30, 2005 was $439,000, or $0.28 per share (on a diluted basis) as compared to $203,000, or $0.13 for the quarter ended June 30, 2004. Net income for the six months ended June 30, 2005 was $834,000, or $0.53 per share (on a diluted basis) as compared to $404,000, or $0.26 for the six months ended June 30, 2004. The improvement in the first half of 2005, as compared to the first half of 2004 represents a 106% increase in net income and a 104% increase in net income per share.
Total assets at June 30, 2005 were $211.8 million as compared to $217.2 million at June 30, 2004, for a decline of $5.4 million. Compared to the December 31, 2004 balance of $217.4 million, total assets declined by $5.6 million. The decline from December 31, 2004 is primarily attributable to a decline in federal funds sold.
Earnings for the current quarter, as compared to the second quarter of 2004, were positively impacted by a number of factors, including increases in the yield on the bank’s earning assets brought about by increases in the bank’s prime lending rate, reductions in non-interest expenses and more effective funds management for deposits.
In addition to the improved operating performance in the first half of 2005, overall asset quality also improved, as the bank entered into an agreement that resulted in the April 14, 2005 sale of approximately $1.7 million in non-accrual loans.
According to Doug Hutcherson, President & CEO, “over the course of the last year, we have taken many steps to improve the performance of the bank. The results for this quarter and year to date speak to the success of those efforts. We very much look forward to furthering these efforts for the balance of 2005 and beyond. ‘
First Security Bancorp, Inc.
CONSOLIDATED BALANCE SHEETS(unaudited)
(in thousands, except per share data)
6/30/2005 12/31/2004 6/30/2004
Assets
Cash & Due From Banks $ 6,635 $ 4,446 $ 5,506
Federal Funds Sold 8,230 18,568 1,570
Securities 37,424 33,748 42,041
Loans 151,164 152,576 159,551
Allowance For Loan Losses (1,457) (1,720) (2,298)
-------- -------- ----------
Net Loans 149,707 150,856 157,253
Other Assets 9,802 9,816 10,838
-------- -------- ----------
Total Assets $211,798 $217,434 $ 217,208
======== ======== ==========
Liabilities & Shareholders' Equity
Deposits
Non-interest Bearing 25,504 22,670 23,031
Savings, Money Market & NOW 45,537 55,180 41,689
Certificates of Deposit 105,194 101,012 108,763
-------- -------- ---------
Total Deposits 176,235 178,862 173,483
Repurchase Agreements 3,153 5,857 8,291
Other Borrowed Funds 10,082 11,246 14,389
Other Liabilities 1,029 861 1,155
-------- -------- ---------
Total Liabilities 190,499 196,826 197,318
Shareholders' Equity 21,299 20,608 19,890
-------- -------- ---------
Total Liabilities & Shareholders' Equity $211,798 $217,434 $ 217,208
======== ======== =========
CONSOLIDATED INCOME STATEMENTS (unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
6/30/2005 6/30/2004 6/30/2005 6/30/2004
Interest Income $ 2,961 $ 2,756 $ $ 5,772 $ 5,418
Interest Expense (1,192) (1,108) (2,307) (2,322)
---------- ---------- ---------- ----------
Net Interest Income 1,769 1,648 3,465 3,096
Loan Loss Provision - (50) - (75)
---------- ---------- ---------- ----------
Net Interest Income After Provision 1,769 1,598 3,465 3,021
Other Income 224 396 434 911
Other Expenses 1,340 1,698 2,663 3,347
Provision for Federal Income Tax (214) (93) (402) (181)
---------- ---------- ---------- ----------
Net Income (loss) $ 439 $ $ 203 $ 834 $ 404
========== ========== ========== ==========
Earnings Per Share
Basic $ 0.28 $ 0.13 $ 0.53 $ 0.26
Diluted $ 0.28 $ 0.13 $ 0.53 $ 0.26
Where appropriate, some items in the prior financial statements have been reclassified to conform to the current presentation.
